Anhydrous ethanol gasoline fuel blends have been gaining ground in the production of Brazilian mills. In the first three months of the 2021/22 sugarcane crop (April – June), around 35.54% of the total output in the Center-South was anhydrous ethanol. This percentage is likely to grow, according to the Commercial Director of BP Bunge Bioenergia, Ricardo Busato Carvalho. “Our market analysts estimate that almost 40% of ethanol production in the Center-South will be anhydrous until the end of the season” he said. Data show that the share of anhydrous ethanol that has been produced by now is the largest for the period since 2017/18. Today, anhydrous has shown to be more profitable than hydrous ethanol. “The price of anhydrous has grown a lot this season”, says the Stonex sugar and ethanol consultant, Bruno Lima. “In mid-May, the price of anhydrous ethanol reached 14% more than hydrous”. In addition, mills do not want to jeopardize current ethanol mandate, which is 27% for gasoline C. Some distributors have asked for a reduction in this percentage, alleging sugarcane crop failure and the high price of the biofuel.

Source: Agencia Estado (*Translated by Ia Niani)